Ireland offers a number of tax-advantaged savings and investment accounts to promote specific saving and investment behaviors among its citizens. Here are some of the main tax-advantaged vehicles available:
Personal Retirement Savings Accounts (PRSAs):
- PRSAs are a type of personal pension scheme that anyone (employed, self-employed, or unemployed) can use to save for retirement.
- Contributions can get relief from personal income tax at the individual’s marginal rate, up to certain age-related limits.
- Investment income and gains accumulate tax-free within the PRSA.
Occupational Pension Schemes:
- These are pension schemes set up by employers to provide retirement and other benefits for employees.
- Similar to PRSAs, contributions benefit from income tax relief, and investment returns within the scheme are tax-free.
Special Savings Incentive Accounts (SSIAs):
- SSIAs were government-supported savings accounts that operated between 2001 and 2007. For every €4 saved, the government added €1.
- Although new contributions are no longer permitted, the tax-free nature of the returns continues to apply for existing SSIAs.
Individual Savings Accounts (ISAs):
Ireland doesn’t have an ISA scheme similar to the UK, but it does offer Deposit Interest Retention Tax (DIRT)-free savings schemes to certain sections of the population, such as first-time buyers saving for a home.
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I’m Orla, a seasoned Tax Accountant and passionate blog writer with a mission to demystify the intricate world of Value Added Tax (VAT). With a career spanning over a decade in the realms of finance and taxation, I have honed my expertise to assist businesses and individuals in navigating the complex landscape of VAT regulations.
My journey into the world of finance and taxation began with a strong fascination for numbers and a desire to make a meaningful impact. Armed with a degree in Accounting, I embarked on a career that would see me becoming a trusted advisor to businesses of all sizes. Over the years, I have had the privilege of helping countless clients optimize their financial operations and ensure compliance with VAT laws. Connect with me through my blog, where you’ll find insightful articles, practical advice, and a friendly voice to guide you through the intricate world of Value Added Tax.
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